News Desk

Kinder Morgan hires TDS


Kinder Morgan has hired investment bank TD Securities (TDS) to facilitate a potential sale of its Canadian business, which could fetch as much as C$2.4 billion ($1.8 billion), people familiar with the situation told Reuters this week.

Should the move succeed, it would mark the exit of the US pipeline giant from Canada, having closed its sale of the Trans Mountain pipeline to the Canadian government for about C$4.5 billion at the end of last month.

After the Reuters report on the hiring of the bank, shares in Kinder Morgan Canada, which completed its initial public offering just last year, turned positive and jumped 3.7 per cent to a three-month high. They ended up 2.1 per cent in a flat market. Shares in Houston-based Kinder Morgan closed down 1.3 per cent.

Spokeswomen for TD and Kinder Morgan declined to comment on the hiring of the investment bank and the valuation. Sources declined to be identified as the process is private.

Pipeline companies in Canada have faced opposition from environmental groups and First Nations groups in recent times in getting approval for new projects. Last month, a Canadian court overturned approval of the Trans Mountain expansion, saying that Ottawa failed to adequately consider aboriginal concerns. On the flip side though, this makes established pipelines highly prized assets by those operating in the country.

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